Lloyds reports zero growth in UK house prices for September

Lloyds' latest index shows no month‑on‑month or annual change in UK house prices for September, while mortgage rates reached 6%.

By Felo News Desk · Published Wed, 07 Oct 2026 09:58:10 GMT

Lloyds Banking Group said on Saturday that UK house prices showed no growth in September, both month‑on‑month and year‑on‑year, according to its property index.

What happened

The index recorded a 0.0% change in average house values from August to September, after a 0.3% decline in August. Year‑on‑year, the figure also held at 0.0% following a 0.4% dip in August. The average price across the United Kingdom in September was £298,441.

What the reports add

Both Standard articles report the flat month‑on‑month and annual readings and the £298,441 average price.
They note that on Monday the average five‑year fixed homeowner mortgage rate hit the 6% mark for the first time in three years, according to Moneyfacts.
Ian Futcher, a financial planner at wealth manager Quilter, warned that “Lloyds’ latest house price index shows UK property prices flatlined in September, leaving annual growth flat at 0.0% and the average home valued at £298,441. The market is facing gathering dark clouds on several fronts, with affordability, confidence and borrowing costs all coming under pressure, which is in turn causing house prices to stall. The forthcoming Budget is adding another layer of uncertainty, with some buyers choosing to sit on their hands until there is greater clarity on the Government’s tax and housing policy agenda.” (Standard)
Nathan Emerson, chief executive at Propertymark, said “Against a backdrop of continued pressure across the global economy, it is perhaps unsurprising to see some fluctuation in domestic house prices. It is important …” (Standard)

What was said

“While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of (the Bank of England) base rate. That’s mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict. Whether that picture continues is likely to depend on how confident consumers feel that the latest cost‑of‑living pressures will prove temporary. Confidence has long been a key driver of housing market activity, and will play an important role in shaping demand over the remainder of this year and into 2027. For now, the housing market appears to be balancing buyer caution with continued underlying demand.”

— Andrew Asaam, mortgages director at Lloyds (Standard)

How it came about

Lloyds’ property index follows a series of monthly readings that have shown modest declines earlier in the year. The latest flat reading comes after a period of higher mortgage rates, with the five‑year fixed rate hitting 6% for the first time. Earlier in September, Felo News reported on London streets where house prices were still doubling despite broader market cooling, highlighting the uneven nature of the UK market (London streets where house prices are doubling).

Key facts

UK house prices showed 0.0% month‑on‑month change in September (standard.co.uk)
UK house prices showed 0.0% year‑on‑year change in September (standard.co.uk)
Average UK house price in September was £298,441 (standard.co.uk)
Average five‑year fixed mortgage rate reached 6% on the market (standard.co.uk)
Andrew Asaam is mortgages director at Lloyds (standard.co.uk)

Timeline

2026-08-01 — Lloyds index recorded a 0.3% month‑on‑month fall in August
2026-08-31 — Lloyds index recorded a 0.4% annual dip in August
2026-09-30 — Lloyds index recorded 0.0% month‑on‑month and annual change for September